DoD spent $16.1M on sewer line repairs, with 3 bidders competing for the 2007 contract
Contract Overview
Contract Amount: $16,138,175 ($16.1M)
Contractor: CDM Smith Inc.
Awarding Agency: Department of Defense
Start Date: 2007-07-16
End Date: 2009-11-04
Contract Duration: 842 days
Daily Burn Rate: $19.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: REPAIR MODERATELY DEFICIENT SEWER LINES
Place of Performance
Location: CAMP PENDLETON, SAN DIEGO County, CALIFORNIA, 92055
Plain-Language Summary
Department of Defense obligated $16.1 million to CDM SMITH INC. for work described as: REPAIR MODERATELY DEFICIENT SEWER LINES Key points: 1. The contract aimed to address moderately deficient sewer lines, indicating a need for infrastructure maintenance. 2. Competition was robust with three bidders, suggesting a healthy market for these services. 3. The firm-fixed-price contract type likely provided cost certainty for the government. 4. The project was awarded to CDM Smith Inc. for a total of $16.1 million. 5. The duration of the contract was 842 days, spanning over two years. 6. The contract was awarded in California, highlighting a specific geographic need.
Value Assessment
Rating: fair
The total award amount of $16.1 million for sewer line repair over approximately two years appears within a reasonable range for a federal infrastructure project of this nature. Benchmarking against similar contracts for sewer line repair by the Department of Defense or other agencies would provide a more precise value-for-money assessment. However, given the scope of repairing 'moderately deficient' lines, the cost seems justifiable for ensuring essential utility functionality.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with three distinct bidders vying for the work. The presence of multiple bidders suggests that the market was accessible and that the solicitation likely attracted a reasonable level of interest. This level of competition is generally favorable for price discovery and ensuring that the government receives competitive pricing for the services rendered.
Taxpayer Impact: The full and open competition for this sewer line repair contract indicates that taxpayers benefited from a process designed to solicit the best possible offers, potentially leading to cost savings compared to a less competitive procurement.
Public Impact
Military personnel and their families stationed at the naval facility in California benefited from improved sanitation and utility services. The contract delivered essential infrastructure repair services, ensuring the operational readiness of the naval base. The geographic impact was concentrated in California, addressing specific needs at a Department of the Navy installation. The contract supported jobs in the heavy and civil engineering construction sector, likely benefiting local and regional workforces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen complexities arose during repair, despite the firm-fixed-price structure.
- Dependence on the contractor's ability to meet stringent environmental and safety regulations during construction.
- Risk of delays due to weather or site-specific conditions impacting the 842-day performance period.
Positive Signals
- Firm-fixed-price contract provides budget certainty for the government.
- Full and open competition suggests a competitive bidding process, likely resulting in a fair price.
- The contract addressed a clear need for infrastructure maintenance, ensuring operational continuity.
Sector Analysis
This contract falls within the Other Heavy and Civil Engineering Construction sector, a critical area for maintaining public and military infrastructure. The market for such services is generally characterized by a mix of large engineering firms and specialized construction companies. Federal spending in this sector often involves significant investments in repairing and upgrading aging infrastructure, including utilities like sewer systems, to ensure functionality and compliance with environmental standards.
Small Business Impact
There is no indication that this contract included a small business set-aside. Given the nature of heavy civil engineering construction, it is possible that small businesses could have participated as subcontractors to the prime contractor, CDM Smith Inc. Further analysis would be needed to determine the extent of small business subcontracting.
Oversight & Accountability
Oversight for this contract would have been managed by the Department of the Navy, likely through contracting officers and technical representatives. Accountability measures would include adherence to the contract terms, performance standards, and delivery schedules. Transparency is generally facilitated through contract award databases, though detailed project-specific oversight reports are not always publicly available.
Related Government Programs
- Military Base Infrastructure Maintenance
- Public Works and Utilities Construction
- Federal Civil Engineering Projects
- Department of Defense Facilities Management
Risk Flags
- Potential for unforeseen site conditions impacting cost and schedule.
- Environmental compliance during repair activities.
- Coordination with ongoing military base operations.
Tags
construction, department-of-defense, department-of-the-navy, california, firm-fixed-price, full-and-open-competition, heavy-and-civil-engineering, infrastructure-repair, sewer-systems, medium-value
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.1 million to CDM SMITH INC.. REPAIR MODERATELY DEFICIENT SEWER LINES
Who is the contractor on this award?
The obligated recipient is CDM SMITH INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $16.1 million.
What is the period of performance?
Start: 2007-07-16. End: 2009-11-04.
What was the specific nature of the 'moderately deficient' sewer lines, and what were the primary repair methods employed?
The contract description 'REPAIR MODERATELY DEFICIENT SEWER LINES' suggests that the existing sewer infrastructure exhibited signs of wear, damage, or reduced capacity that did not yet constitute a critical failure but required proactive intervention. Specific deficiencies could include cracks, leaks, infiltration/exfiltration issues, or blockages due to root intrusion or sediment buildup. The primary repair methods would typically involve trenching and replacement of damaged pipe sections, cured-in-place pipe (CIPP) lining, pipe bursting, or other trenchless technologies, depending on the extent of the damage, soil conditions, and the need to minimize disruption. The firm-fixed-price nature of the contract implies that the scope of work and expected repair methods were well-defined at the time of award.
How does the $16.1 million award compare to similar sewer repair projects undertaken by the Department of Defense or other federal agencies around the same period (2007-2009)?
Benchmarking the $16.1 million award requires comparing it to similar projects in terms of scope, complexity, location, and duration. Federal contracts for sewer line repair can vary significantly. For instance, a contract solely for pipe lining might cost less per linear foot than a full replacement project involving extensive excavation. Projects on active military bases can also incur additional costs due to security requirements and operational constraints. Without specific data on comparable projects from 2007-2009, it's challenging to definitively state if $16.1 million was high or low. However, for a project spanning over two years and addressing 'moderately deficient' lines across potentially multiple segments of a naval facility, this figure appears plausible for a federal infrastructure undertaking of that era.
What were the key performance indicators (KPIs) or metrics used to evaluate the success of this contract and the performance of CDM Smith Inc.?
While specific KPIs are not detailed in the provided data, typical performance indicators for a sewer repair contract would likely include adherence to the project schedule (842-day duration), completion of repairs within the firm-fixed price budget of $16.1 million, quality of workmanship (e.g., meeting specified standards for pipe integrity, flow capacity, and material usage), compliance with safety regulations, and successful restoration of affected areas. The government's acceptance of the completed work would serve as the ultimate measure of success. Performance evaluations might also consider factors like responsiveness to issues, coordination with base operations, and environmental compliance. CDM Smith Inc.'s track record on subsequent contracts could also reflect their performance on this project.
What is the typical track record of CDM Smith Inc. in performing federal construction and engineering contracts, particularly those involving civil infrastructure?
CDM Smith Inc. is a well-established global engineering, construction, and consulting firm with extensive experience in water, environment, and infrastructure projects. They have a long history of working with federal agencies, including the Department of Defense, on a wide range of civil engineering and construction contracts. Their portfolio typically includes projects related to water and wastewater systems, transportation infrastructure, and environmental remediation. Federal contract databases often show a significant number of awards to CDM Smith across various agencies. Their track record generally indicates a capacity to handle large, complex projects, though like any large contractor, performance can vary by specific project and location. This particular contract for sewer line repair aligns well with their core competencies.
Were there any significant risks identified during the bidding process or contract execution, and how were they mitigated?
For a firm-fixed-price contract awarded under full and open competition, risks are typically identified and addressed during the solicitation and proposal phases. Potential risks for this sewer repair project could include unforeseen subsurface conditions (e.g., encountering unexpected utilities, rock formations, or contaminated soil), environmental hazards, or logistical challenges on a military installation. The government would mitigate these by conducting thorough site investigations prior to solicitation, clearly defining the scope of work and potential contingencies in the contract documents, and requiring the contractor to submit a comprehensive work plan and risk mitigation strategy. During execution, the government's technical representatives would monitor progress, ensure compliance with safety and environmental protocols, and manage any change orders or unforeseen issues that might arise, aiming to keep the project within the original budget and schedule.
How does the contract type (Firm Fixed Price) influence the risk allocation between the government and CDM Smith Inc. for this project?
The Firm Fixed Price (FFP) contract type significantly shifts the primary risk of cost overruns to the contractor, CDM Smith Inc. In an FFP arrangement, the contractor agrees to perform a specific scope of work for a predetermined price, regardless of the actual costs incurred. This provides the government with cost certainty, as the total expenditure is fixed unless the contract scope is formally modified through change orders. For CDM Smith, this means they must accurately estimate all costs associated with the sewer line repairs, including labor, materials, equipment, and overhead, and build in a sufficient profit margin to cover potential unforeseen expenses. If their costs exceed their estimate, their profit margin shrinks, or they could incur a loss. Conversely, if they manage the project efficiently and their costs are lower than anticipated, their profit increases. This structure incentivizes the contractor to control costs and manage the project effectively.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6871103R0002
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 1925 PALOMAR OAKS WAY STE, CARLSBAD, CA, 49
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $16,138,175
Exercised Options: $16,138,175
Current Obligation: $16,138,175
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6871104D5110
IDV Type: IDC
Timeline
Start Date: 2007-07-16
Current End Date: 2009-11-04
Potential End Date: 2009-11-04 00:00:00
Last Modified: 2010-01-15
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